Mt Pelerin animated logo 💵 WILL MICROSOFT BUY BITCOIN? According to an October 24 filing with the US Securities and Exchange Commission (SEC), Microsoft shareholders will vote on December 10 a proposal to invest a part of the company's treasury in Bitcoin. 1 R1.006 ___ursii2 00018138861 THIS VOTING INSTRUCTION FORM 1S VALID ORLY WHEN SIGNED AND DATED. PLEASE USE BLUE OR BLACK INK AND RETURN ONLY THE 6OTTOM PORTION. HIGROSOFT CORPORATION _I T o rsomers oot RO 0 flrgfor A Aton T ot S o i RO ko oty T At Ao ol Elaetion of Biractor. Reta G, bottamn 0 0 O iy vets to Aoprove Nases Exscutive o 0o 5. Election of Director: Hugh F. Jonnston 0 0 O s Rilisetionsr i ssieetion o7 osterets 8 0 0 0 . Etection o birsctor: Tor L. List 0 0 O e e e mterer 14 Election of Direstor: Catharine NacGregor O O O s rocomenss e vote son e for Against Abstain o Election of Director: Mok . L. Nason 0 0 0 e it oestoment 0 0o 1. Election of Dirsctor: Saty Nagella 0 O O s sssesseent of tnestig in eicoin 00 o0 49, Election of Director: Sandra E. Paterson 0 0 0 e fmort o oute seration in emsn Rirts 0 0 o . Election of Diractor: Peony 5. Pritzior 0 0 0 & &% uunes mongeemnene 0 0 0 1. Elaction of Diractor: Carlas A, Rosrigusz 0 0 o Bradostions T TR e R 11, Election of Director: Charles W. Sehort O O O s seport on A mistntormation sna oistnrormstion. 0 0 O . Elecion of iractr: Jonn K. Stanton 0 O O s Rt on AL bata Sorcing Accontaitity 00 o0 . Etection of irectr: £ans . valssley 0 0 O e sionotnar sivess e say orssarty 0123 4567 8192 1239 12/10/24 123,456,789,012.00000 St PLEASE SN WiTN 80%1 oo 594918104 xxxxACCOUNT Pl6214-01s Gs2 The proposal was submitted by the National Center for Public Policy Research (NCPPR), which supported it by referring to the successful Bitcoin investment strategy of MicroStrategy, whose shares have indeed outperformed Microsoft's by around 300% this year. However, the Board of Directors of Microsoft recommends its shareholders to vote against the project, as it already owns a "broad range of assets". It was also pointed out that the introduction of ETFs has now made investing in Bitcoin "commonplace" for companies, as it offers a hedge against inflation in spite of its volatilty. The NCPPR describes itself as a non-partisan, free-market, independent conservative think tank with a focus on securing the freedom of Americans and future generations. If that vote was accepted, how much money could flow into Bitcoin from a Microsoft investment? According to its 2024 financial reports, Microsoft holds around $76 billion in cash reserves. A investment of 10% of that reserve would therefore mean a whopping $7.6 billion for Bitcoin. Bitcoin Top 20 Entities ep2020) Rank Entities BTC Value Total Share Held for Clients 1 @ Coinbase 2,256,287 + $134.5b 10.74% Yes 2 ® satoshi* 968,452 $57.7b 4.61% No 3 +Z+ Binance 636,209 $377b 3.03% Yes 4 mama BlackRock 357,509 — $21.3b 1.70% Yes 5 0 MicroStrategy 252,220 — $14.6b 1.20% Yes 6 & Grayscale 224,751 $13.4b 1.07% No 7 £ U.s. Gov. 213,246 $13.0b 1.02% No At a Bitcoin price of $70,000, this would correspond to around 104,000 bitcoins, seven times the holdings of Tesla but still more than half the treasury of MicroStrategy, which currently holds around 252,000 bitcoins. Read more > #️⃣ BITCOIN - HASHRATE INCREASES NETWORK SECURITY The hashrate of the Bitcoin blockchain has reached a new all-time high, which also significantly increases the security of the network. The hashrate of the Bitcoin network represents the total computing power that secures the network. On October 21, it reached a value of 769.8 exahashes per second: Although a high hashrate stands for increased network security, it also means higher costs for mining Bitcoin. In combination with the halving of block rewards that took place in April, the profitability of smaller mining companies could be threatened. 900E | — Bitcoin - Hashrate 800E 700E B00E = 2 b Hashrate 400E 300E 2008 oy MMN\/\M e W TRV 100E| Jan 2024 Jan 2022 Apr 2022 Jul 2022 Feb 2024 Mar 2024 Oct 2022 Apr 2024 Jan 2023 May 2024 Apr 2023 Jun 2024 Jul 2023 Jul 2024 Oct 2023 Jan 2024 Aug 2024 Apr 2024 Sep 2024 Jul 2024 Oct 2024 oct 2(‘)24 As data from bitinfocharts.com shows, the hashrate has risen steadily over the years. If the price of mining increases, smaller companies with inefficient mining rigs could be forced to sell their stocks, which in turn could lead to an increased selling pressure on the market. According to data from KryptoQuant, however, it does not look like mining companies are selling off at the moment: Read more > 👨‍💼 BIS AND FSB TOKENIZATION REPORTS In the run-up to the meeting of G20 finance ministers and central bank governors on 23 and 24 October, the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) independently published a number of papers on asset tokenization. The BIS identified potential risks but concluded that tokenization could offer potential benefits in terms of security and efficiency. However, it would require regulation by central banks. @ sne X @swiftcommunity - Follow The @BIS_org Committee on Payments and Market Infrastructures has just released a new API harmonisation toolkit, It's designed to improve the speed, transparency, and accessibility of cross-border payments, in line with the G20's targets. We're excited to support this... Show more andmarketintrasirocres | D BIS » Report o the G20 Promoting the harmonisation of application programming interfaces to enhance cross-border payments: recommendations and toolkit 6:41PM. Oct 17, 2024 @ @ 1657 ® Reply @ Copylink Read 4 replies The fact that there is no clear definition of what tokenization is was also cited as a problem: “There is no generally accepted definition of tokenization and the term has not been used consistently in the context of various initiatives.” They also highlighted unresolved questions regarding liquidity and maturity mismatch, leverage, price and quality, interconnectedness and operational vulnerabilities. The FSB has set tokenization as a priority topic for 2024. The BIS oversees numerous tokenization projects within its Innovation Hub, in which many central banks around the world participate. Read more > 🏦 CBDCS AND CRYPTO ARE NOT IN COMPETITION In a post on X, CoinDCX CEO Sumit Gupta argued that CBDCs and cryptocurrencies serve different purposes and should not be seen as competing technologies. Gupta published his statement in the wake of an ongoing debate regarding India's position on the regulation of cryptocurrencies and its own central bank digital currency: Sumit Gupta (CoinDCX) & X @smtgpt - Follow I just read an article on @htTweets where an anonymous expert compares CBDCs to crypto and claims, 'CBDCs can do whatever cryptos do.. CBDCs have an edge over bitcoin” I humbly disagree with the above statement. CBDCs and crypto assets serve different purposes and shouldn't be... Show more pi T TE T KOs AT Home Assembly Elections 2024 2024 USElections ( CBDC has an edge on Bitcoin, Ether: Experts to govt By Rajeev Jayaswal, New delhi Oct 22,2024 09:06 AM IST India's regulators favor banning private cryptos like Bitcoin, citing CBDCs' advantages. They stress CBDCs' potential for financial inclusion and safety. 11:08 AM - Oct 23, 2024 @ ® 28 ® Reply @ Copylink Read 68 replies According to Gupta, CBDCs and cryptocurrencies have different roles and are therefore not in competition with each other: “CBDCs are issued centrally by the nation's central bank, which ensures complete control over their issuance, supply and usage.” Centralized management of CBDCs would enable a more effective monetary policy, better inflation management, better adjustment of liquidity and key interest rates. The term CBDCs is met with a lot of headwind in the crypto community. Jack Booth, co-founder of the TON Society, spoke to Cointelegraph and expressed what many crypto supporters are convinced of, that "CBDCs pose the greatest danger to self-sovereignty". Read more > 🧹 "THE PURGE" OF VITALIK BUTERIN Vitalik Buterin, co-founder of Ethereum, plans a "purge" to reduce Ethereum's data clutter, simplify the protocol and thus increase its efficiency. He presented his plan as part of a series on his blog entitled "The Purge": The Purge 7 Goal: simplify the protoc, eliminate technical debt and limit costs of paricpating in the network by clearing old history 4424 |mpiementaton P28 hisory i (eq.Porta) G History /| expiy (EPa4s) J (Adsress space extension State expiry In that plan, he wants to reduce unnecessary data storage, eliminate outdated functions and thus make Ethereum more efficient while maintaining the stability of the blockchain. His project will not have an impact on gas fees as it will primarily focus on network performance improvements. Above all, the aim is to reduce the memory requirements to run a node, which currently is an important barrier to create a new node. Indeed, a fully synchronized Ethereum node requires today abizt 1.2 terabytes of storage space. In the future, Buterin wants to reduce the need for each individual node to permanently store the entire history of the chain. Read more > 💰 THE CASE FOR BITCOIN AS A RESERVE ASSET In a recent paper published by the Bitcoin Policy Institute entitled The Case for Bitcoin as a Reserve Asset, author Matthew Ferranti argues for the adoption of Bitcoin by central banks worldwide. He describes Bitcoin as a hedge against rising inflation, geopolitical risks, capital control risks, state bankruptcies, bank collapses and international sanctions imposed by the US government. For him, Bitcoin is an “effective portfolio diversifier”. He explains that Bitcoin has a weak correlation with other commonly used financial assets. Figure 3: Correlations Between Bitcoin and Traditional Reserve Assets Are Low Rolling 6-Month Correlation: Bitcoin and Other Assets —— 5-year Treasuries ~——— Total US Stock Market As Bitcoin is not affected by any counterparty risk, it can be seen as an effective hedge against the insolvency of states. This includes financial sanctions, which can be seen as a form of selective insolvency, such as those applied to Russia and Venezuela. However, he also noted that including Bitcoin or gold as reserve assets may not be equally optimal for all central banks. Read more > Referral animation INVITE FRIENDS & EARN Invite your friends to use Mt Pelerin and earn 25% of their fees in reward! Get started > Share Share Share Share Share Share Forward Forward Twitter LinkedIn Facebook Instagram © 2024 Mt Pelerin Group SA, all rights reserved. This Newsletter is for informational purposes only. Any information herein does not constitute any legal, financial, tax or investment advice and is not intended as and is not to be taken as a recommendation, offer or solicitation for buying, trading or selling cryptocurrencies in any jurisdiction, including those in which such an offer or solicitation is not authorised or to any person to whom it is unlawful to make such a solicitation or offer. 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